RENEWABLE ENERGY'S MARKETS AND INDUSTRIES TRENDS

GEOTHERMAL POWER AND HEAT

Geothermal industry sees measured progress in some key markets.

Geothermal resources provide electricity and thermal energy services (heating and cooling). In 2016, the estimated electricity and thermal output from geothermal sources was 567
PJi (157 TWh), with each providing approximately equal shares. Some geothermal plants produce both electricity and thermal output for various heat applications. The countries
with the largest amounts of geothermal power generating capacity at the end of 2016 were the United States (3.6 GW), the Philippines (1.9 GW), Indonesia (1.6 GW), New Zealand (1.0
GW), Mexico (0.9 GW), Italy (0.8 GW), Turkey (0.8 GW), Iceland (0.7 GW).

The geothermal industry continued to face challenges in 2016, burdened by the inherent high risk of geothermal exploration and project development, the associated lack of risk
mitigation, and the constraints of financing and competitive disadvantage relative to low-cost natural gas.

Yet the industry made progress with new project developments in key markets, and industry leaders cemented partnerships to pursue new opportunities. Indonesia and Turkey each added
about 200 megawatts (MW) of capacity, representing the bulk of additions in 2016 for a total of 13.5 GW.

Globally, geothermal power produced an estimated 78 Terawatt-hours (TWh) during the year. Geothermal direct use amounted to an estimated 286 peta-joules (PJ) in 2015 (79 TWh). Expansion of
geothermal direct use continued in 2016, including in several district heating systems in Europe.